We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tyson Foods (TSN) Q3 Earnings Top Estimates, Sales Up Y/Y
Read MoreHide Full Article
Tyson Foods, Inc. (TSN - Free Report) posted third-quarter fiscal 2022 results, with the top and the bottom line beating the Zacks Consensus Estimate. Earnings declined year over year while sales increased.
Results gained from a focus on operational excellence and aggressive cost management. Management is impressed with its progress in the chicken business. The company remains the market share leader in various retail business lines like Tyson, Jimmy Dean, Hillshire Farm and Ball Park brands.
Tyson Foods, Inc. Price, Consensus and EPS Surprise
Adjusted earnings came in at $1.94 per share, beating the Zacks Consensus Estimate of $1.91. However, the bottom line declined 28% year over year.
Total sales came in at $13,495 million, up 8.2% from $12,478 million reported in the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $13,307.9 million. Gains from average price change were 8.1%, while total volumes inched down 1.9%.
Gross profit in the quarter came in at $1,611 million, down from $1,620 million reported in the prior-year quarter. Gross profit, as a percentage of sales, came in at 11.9%, down from 13% reported in the year-ago quarter. Tyson Foods’ adjusted operating income decreased 27% to $998 million. Adjusted operating margin contracted to 7.4% from 10.8% reported in the year-ago quarter.
Segment Details
Beef: Sales in the segment increased to $4,959 million from $4,954 million reported in the year-ago quarter. Volume inched up 1.3% on a solid global demand environment. These were somewhat offset by a tough labor environment and ongoing supply chain constraints. The average price decreased 1.2% in the segment, led by lower demand for premium cuts of beef.
Pork: Sales in the segment decreased to $1,619 million from $1,715 million reported in the year-ago quarter. Sales volume declined 1.7%, owing to reduced global demand. The average price declined 3.9%, led by lower export and retail demand.
Chicken: Sales in the segment increased to $4,366 million from $3,476 million reported in the year-ago quarter. Sales volume fell 2.1%, mainly due to the impact of a fire at a production facility during the fourth quarter of fiscal 2021. Also, lower outside meat purchases were a downside. The average price increased 20.1% on the impacts of pricing actions undertaken amid the inflationary cost environment.
Prepared Foods: Sales in the segment rose to $2,447 million from $2,323 million reported in the year-ago quarter. Prepared Foods’ sales volume declined 8.5%, thanks to impacts of higher pricing, uneven foodservice rebound, divestiture of its pet treats business (concluded in fourth-quarter fiscal 2021) and tough supply chain conditions. The average price increased 13.8%, mainly owing to the effects of revenue management amid an inflationary cost environment.
International/Other: Sales in the segment were $602 million, up from $488 million reported in the year-ago quarter. Volume moved up 21.9%, while average sales price jumped 1.5%.
Other Financial Updates
The company exited the quarter with cash and cash equivalents of $1,056 million, long-term debt of $8,261 million and total shareholders’ equity (including non-controlling interests) of $19,489 million. In nine months ended Jul 2, 2022, cash provided by operating activities amounted to $1,890 million.
Liquidity was $3.3 billion as of Jul 2, 2022. Management expects liquidity to remain above the company’s minimum target of $1 billion. The company projects capital expenditures to be nearly $1.9 billion for fiscal 2022.
Outlook
For fiscal 2022, the United States Department of Agriculture (“USDA”) projects domestic protein production (beef, pork, chicken and turkey) to be relatively in-line with fiscal 2021 levels.
Starting from fiscal 2022, management launched a new productivity program to drive a better, faster and more agile organization. The company expects to achieve $1 billion in productivity savings by the end of fiscal 2024 and more than $400 million in fiscal 2022, relative to a fiscal 2021 cost baseline. Management is on track to achieve its fiscal 2022 productivity savings. Management anticipates sales in the $52-$54 billion range in fiscal 2022.
Image Source: Zacks Investment Research
Segment-Wise Guidance for Fiscal 2022
For the Beef segment, USDA projects domestic production to grow roughly 1% year over year in fiscal 2022. For Pork, domestic production is projected to decline almost 3% year over year in fiscal 2022, per the USDA. Per USDA forecasts, production in the Chicken segment will likely improve by nearly 1% in fiscal 2022. For fiscal 2022, the company expects lower results from its foreign operations in the International/Other segment owing to supply chain disruptions and other COVID-19 impacts.
Shares of this Zacks Rank #3 (Hold) company have increased 13.2% in the past year against the industry’s 1.4% decline.
United Natural Foods distributes natural, organic, specialty, produce and conventional grocery and non-food products. UNFI currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for UNFI’s current financial year sales suggests 7.6% growth from the year-ago period’s reported figures. United Natural Foods has a trailing four-quarter earnings surprise of 29.9%, on average.
Chef’s Warehouse, a distributor of specialty food products in the United States, currently flaunts a Zacks Rank #1. CHEF has a trailing four-quarter earnings surprise of 355.9%, on average.
The Zacks Consensus Estimate for Chef Warehouse’s current financial-year sales suggests growth of 40.7%from the year-ago reported numbers.
General Mills, which manufactures and markets branded consumer foods worldwide, currently carries a Zacks Rank of 2 (Buy). GIS has a trailing four-quarter earnings surprise of 6.5%, on average.
The Zacks Consensus Estimate for General Mills’ current financial-year sales and earnings per share suggests growth of almost 2% and 1.5%, respectively, from the corresponding year-ago reported figures.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Tyson Foods (TSN) Q3 Earnings Top Estimates, Sales Up Y/Y
Tyson Foods, Inc. (TSN - Free Report) posted third-quarter fiscal 2022 results, with the top and the bottom line beating the Zacks Consensus Estimate. Earnings declined year over year while sales increased.
Results gained from a focus on operational excellence and aggressive cost management. Management is impressed with its progress in the chicken business. The company remains the market share leader in various retail business lines like Tyson, Jimmy Dean, Hillshire Farm and Ball Park brands.
Tyson Foods, Inc. Price, Consensus and EPS Surprise
Tyson Foods, Inc. price-consensus-eps-surprise-chart | Tyson Foods, Inc. Quote
Quarter in Detail
Adjusted earnings came in at $1.94 per share, beating the Zacks Consensus Estimate of $1.91. However, the bottom line declined 28% year over year.
Total sales came in at $13,495 million, up 8.2% from $12,478 million reported in the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $13,307.9 million. Gains from average price change were 8.1%, while total volumes inched down 1.9%.
Gross profit in the quarter came in at $1,611 million, down from $1,620 million reported in the prior-year quarter. Gross profit, as a percentage of sales, came in at 11.9%, down from 13% reported in the year-ago quarter. Tyson Foods’ adjusted operating income decreased 27% to $998 million. Adjusted operating margin contracted to 7.4% from 10.8% reported in the year-ago quarter.
Segment Details
Beef: Sales in the segment increased to $4,959 million from $4,954 million reported in the year-ago quarter. Volume inched up 1.3% on a solid global demand environment. These were somewhat offset by a tough labor environment and ongoing supply chain constraints. The average price decreased 1.2% in the segment, led by lower demand for premium cuts of beef.
Pork: Sales in the segment decreased to $1,619 million from $1,715 million reported in the year-ago quarter. Sales volume declined 1.7%, owing to reduced global demand. The average price declined 3.9%, led by lower export and retail demand.
Chicken: Sales in the segment increased to $4,366 million from $3,476 million reported in the year-ago quarter. Sales volume fell 2.1%, mainly due to the impact of a fire at a production facility during the fourth quarter of fiscal 2021. Also, lower outside meat purchases were a downside. The average price increased 20.1% on the impacts of pricing actions undertaken amid the inflationary cost environment.
Prepared Foods: Sales in the segment rose to $2,447 million from $2,323 million reported in the year-ago quarter. Prepared Foods’ sales volume declined 8.5%, thanks to impacts of higher pricing, uneven foodservice rebound, divestiture of its pet treats business (concluded in fourth-quarter fiscal 2021) and tough supply chain conditions. The average price increased 13.8%, mainly owing to the effects of revenue management amid an inflationary cost environment.
International/Other: Sales in the segment were $602 million, up from $488 million reported in the year-ago quarter. Volume moved up 21.9%, while average sales price jumped 1.5%.
Other Financial Updates
The company exited the quarter with cash and cash equivalents of $1,056 million, long-term debt of $8,261 million and total shareholders’ equity (including non-controlling interests) of $19,489 million. In nine months ended Jul 2, 2022, cash provided by operating activities amounted to $1,890 million.
Liquidity was $3.3 billion as of Jul 2, 2022. Management expects liquidity to remain above the company’s minimum target of $1 billion. The company projects capital expenditures to be nearly $1.9 billion for fiscal 2022.
Outlook
For fiscal 2022, the United States Department of Agriculture (“USDA”) projects domestic protein production (beef, pork, chicken and turkey) to be relatively in-line with fiscal 2021 levels.
Starting from fiscal 2022, management launched a new productivity program to drive a better, faster and more agile organization. The company expects to achieve $1 billion in productivity savings by the end of fiscal 2024 and more than $400 million in fiscal 2022, relative to a fiscal 2021 cost baseline. Management is on track to achieve its fiscal 2022 productivity savings. Management anticipates sales in the $52-$54 billion range in fiscal 2022.
Image Source: Zacks Investment Research
Segment-Wise Guidance for Fiscal 2022
For the Beef segment, USDA projects domestic production to grow roughly 1% year over year in fiscal 2022. For Pork, domestic production is projected to decline almost 3% year over year in fiscal 2022, per the USDA. Per USDA forecasts, production in the Chicken segment will likely improve by nearly 1% in fiscal 2022. For fiscal 2022, the company expects lower results from its foreign operations in the International/Other segment owing to supply chain disruptions and other COVID-19 impacts.
Shares of this Zacks Rank #3 (Hold) company have increased 13.2% in the past year against the industry’s 1.4% decline.
3 Hot Staple Bets
Some better-ranked stocks are United Natural Foods (UNFI - Free Report) , The Chef's Warehouse (CHEF - Free Report) and General Mills, Inc. (GIS - Free Report) .
United Natural Foods distributes natural, organic, specialty, produce and conventional grocery and non-food products. UNFI currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for UNFI’s current financial year sales suggests 7.6% growth from the year-ago period’s reported figures. United Natural Foods has a trailing four-quarter earnings surprise of 29.9%, on average.
Chef’s Warehouse, a distributor of specialty food products in the United States, currently flaunts a Zacks Rank #1. CHEF has a trailing four-quarter earnings surprise of 355.9%, on average.
The Zacks Consensus Estimate for Chef Warehouse’s current financial-year sales suggests growth of 40.7%from the year-ago reported numbers.
General Mills, which manufactures and markets branded consumer foods worldwide, currently carries a Zacks Rank of 2 (Buy). GIS has a trailing four-quarter earnings surprise of 6.5%, on average.
The Zacks Consensus Estimate for General Mills’ current financial-year sales and earnings per share suggests growth of almost 2% and 1.5%, respectively, from the corresponding year-ago reported figures.